- Palantir shares fall on Tuesday after previously breaking through the $20-$21.15 resistance band.
- The British NHS officially announced that Palantir will lead a corporate team to review the public healthcare system’s operating software.
- The contract will pay £330m over seven years.
- The bears will try to push PLTR back towards the $18 support.
Palantir (PLTR) shares were rejected on Tuesday, falling 7.3%. On Monday, PLTR stock appeared to have reached escape velocity. Shares of the artificial intelligence company opened Tuesday at $21.11, but closed at $19.79.
Palantir followed the broader market as both the S&P 500 and Dow Jones fell about 0.2%, while the NASDAQ fell about 0.6%. Tuesday’s stock consolidation came after the S&P 500 ended its three-month correction in the shortest period of time in 50 years, according to Deutsche Bank analysts.
Palantir News: NHS contract is official
On Tuesday, Palantir announced what had been rumored for weeks: the company founded by Peter Thiel has been selected to lead a group of firms that will overhaul the United Kingdom’s public health service using a new digitized database.
Palantir has been chosen to lead the £330 million ($413 million) deal, which is expected to last seven years. Other consultancies such as Accenture, PwC, NECS and Carnall Farrar will also contribute to the contract.
The contract focuses on a new software platform called Federated Data Platform or FDP. Its main objective is to reduce patient waiting times and reduce delays in hospital discharge in the National Health Service (NHS).
In a statement, the NHS said: “Pilot projects using the new data-sharing approach have seen a decrease in waiting times for scheduled care and delays in hospital discharge, and have seen hospital discharge times accelerate. diagnosis and treatment”.
In one of these pilot projects, the North Tees and Hartlepool Trust hospital system managed to reduce long-term stays by 36%, allowing it to care for almost 8% more patients than usual.
“This award is the culmination of 20 years of software development that allows complex and sensitive data to be integrated in a way that protects security, respects privacy and gives full control to the customer,” said Alex Karp, CEO of Palantir, it’s a statement.
Prior to this contract, Palantir worked pro-bono to help the NHS schedule Covid vaccinations and surgeries.
Frequently asked questions about the S&P 500
What is the S&P 500?
The S&P 500 is a widely followed stock index that measures the performance of 500 public companies and is considered a broad measure of the U.S. stock market. The influence of each company in the calculation of the index is weighted based on market capitalization. This is calculated by multiplying the number of listed shares of the company by the share price. The S&P 500 Index has achieved impressive returns: $1.00 invested in 1970 would have produced a return of almost $192.00 in 2022. The average annual return since its inception in 1957 has been 11.9%.
How are companies chosen to be included in the S&P 500?
Companies are selected by committee, unlike other indices where they are included based on established standards. Still, they must meet certain eligibility criteria, the most important of which is market capitalization, which must be equal to or greater than $12.7 billion. Other criteria are liquidity, domicile, market capitalization, sector, financial viability, listing time, and representation of the sectors of the United States economy. The nine largest companies in the index represent 27.8% of the index’s market capitalization.
How can I trade the S&P 500?
There are several ways to trade the S&P 500. Most retail brokers and spread betting platforms allow traders to use Contracts for Difference (CFDs) to place bets on price direction. In addition, you can buy index funds, mutual funds and exchange-traded funds (ETFs) that track the price of the S&P 500. The most liquid of the ETFs is the London Stock Exchange ETF. The most liquid of the ETFs is State Street Corporation’s SPY. The Chicago Mercantile Exchange (CME) offers futures contracts on the index and the Chicago Board of Options (CMOE) offers options, as well as ETFs, inverse ETFs, and leveraged ETFs.
What factors drive the S&P 500?
There are many factors that drive the S&P 500, but primarily it is the aggregate performance of its component companies, revealed in their quarterly and annual earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment, which if positive, drives earnings. The level of interest rates, set by the Federal Reserve (Fed), also influences the S&P 500, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Forecast on Palantir
A pullback was bound to happen at some point, as PLTR stock has continued to rise since its third-quarter earnings beat estimates earlier this month. Shares are up more than 46% since Nov. 1.
Last Friday, Palantir’s stock price closed above the high of the $20.24 range on August 1, but the Relative Strength Index (RSI) showed that PLTR was overbought after such a rapid rally in the first half. of November.
A likely support level at the moment is the $18 level, which acted as resistance in October and then support in the early part of this month. Traders will give more credibility to this level as the 21-day SMA is nearby.
PLTR daily chart
On Monday, PLTR broke above the $20 to $21.15 support band that largely supported the stock price during the March-July 2021 period, shortly after the company went public. That band could still matter, as PLTR was only able to break through it for the first time in over two years during a single session before falling back.
If PLTR breaks back above $21.15 as the market pivots its expectations toward a Santa Claus rally, then the bulls could focus their energy on the $29 to $32 target that shareholders haven’t seen in two years.
PLTR weekly chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
